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Betas of three financial securities, call these securities as A, B and Care 0.5, 1.2 and 2.5 respectively. The risk-free rate of interest is 3%

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Betas of three financial securities, call these securities as A, B and Care 0.5, 1.2 and 2.5 respectively. The risk-free rate of interest is 3% per annum and the expected rate of return on the market portfolio is 10% per annum. Find risk premium and expected rate of return on each of the three securities. Suppose that an investor invests $5000 in security A, $15,000 insecurity B and $40,000 in security C. Calculate the expected rate of return on investors portfolio

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